Originally posted to Data Center Frontier by Bill Kleyman.
This is the first of three entries in a Data Center Frontier series that explores how hyperscale will disrupt the data center market. This series, compiled in a complete Guide, also covers selecting the right hyperscale partner and the elements of a hyperscale data center.
Defining Hyperscale and Understanding Major Industry Trends
There are more users, complex applications and data points accessing your infrastructure. Now, new kinds of demands are requiring modern organizations to rethink their data center environment, delivery model, and how cloud architecture can be utilized even more.
A recent Deloitte Technology report projects that by the end of 2018, spending on IT-as-a-Service for data centers, software and services will be $547B. Deloitte Global predicts that procurement of IT technologies will accelerate in the next 2.5 years from $361B to $547B. At this pace, IT-as-a-Service will represent more than half of IT spending by the 2021/2022 timeframe. Furthermore, cloud computing continues to grow at rates much higher than IT spending generally. Growth in cloud services is being driven by new IT computing scenarios being deployed using cloud models, as well as the migration of traditional IT services to cloud service and data center provider alternatives.
This has given the rise to hyperscale data centers which are capable of delivering resources, agility, and improved business economics. Today, the development of large-scale, cloud-ready, hyperscale data centers is evident as their numbers will swell from 259 in number at the end of 2015 to 485 by 2020, according to Cisco’s report. They will represent 47 percent of all installed data center servers by 2020. As we look ahead, hyperscale cloud operators are increasingly dominating the cloud landscape.
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